Clubhouse Management and Governance

Module Six: Clubhouse Governance and Management

Overview:

Types of Clubhouses:

There are two types of corporate structures for a Clubhouse. Clubhouse programs are either fully incorporated as a nonprofit charitable organization or operate as a program service offered by a parent agency that has a nonprofit status. Clubhouses that are fully incorporated and operate independently of other agencies are known within the Clubhouse community as a "Freestanding Clubhouse". When the Clubhouse is offered through a parent organization, the parent organization is typically a non-profit organization, and the Clubhouse it governs is commonly referred to as an "Auspice Clubhouse".

Incorporated “Free-standing” Clubhouses have corporation By-laws and Articles of Incorporation filed with appropriate government authorities that outline the rules by which the organization is governed and how it operates. As a corporation, freestanding Clubhouses have a Board of Trustees (or Directors) composed of members of the community who have fiduciary and governance responsibilities to protect the interests of the Clubhouse, promote its contribution to the community, ensure that there is sufficient financial and other resources to support the clubhouse’s operations, evaluate the Clubhouse’s overall performance and pursuit of its mission, and evaluate the performance of the Clubhouse Director.

Nonprofit organizations that act as an auspice agency for a Clubhouse will have the same corporate structure as a free-standing Clubhouse and will share the same governance roles and responsibilities. An important difference between the two types of Clubhouses is that Boards of Free-standing Clubhouses will have the Clubhouse as their first and only priority while Clubhouses governed by auspice agencies will often have multiple programs and constituents that must be prioritized along with the Clubhouse for funding allocations and strategic direction of the organization.

Clubhouse Governance:

In terms of its governance role with the Clubhouse, the Board of Trustees represents the legal authority for the corporation and establishes its overall policies. The Board sets policies while the Clubhouse administrative staff implements those policies and manages the day-to-day operations of the Clubhouse together with the Clubhouse Community. The By-Laws define the number and composition of Board members and the Clubhouse Board typically reflects the composition of the communities they serve to ensure the community has representation and the Clubhouse has access to the resources that only the community can provide. In addition to determining the overall mission and goals of the organization, the Board has the fiduciary responsibility for selecting the chief executive officer of the organization, providing financial oversight, ensuring legal compliance and ethical integrity, effective planning, Board recruitment, and making certain that the Clubhouse maintains its good standing in the community.

To perform its various duties and responsibilities, the Clubhouse Board of Trustees will generally organize its work through multiple Committees, e.g. Executive Committee, Program Committee, Personnel Committee, Finance Committee, Development Committee, Facilities Committee, and ad-hoc committees for fundraising events, capital campaigns, and any unusual incidents. Committee membership may include members of the Board, program staff, Clubhouse members, or community volunteers.

Clubhouse Management:

While the Board is responsible for policies and the corporate governance of the Clubhouse organization, the management of the day-to-day operations and work of the Clubhouse is performed by Clubhouse members and staff working together in a collaboration of duties, roles, and responsibilities.

The power to make decisions is shared within a Clubhouse and the day-to-day decision-making about what happens in the Clubhouse is determined by Clubhouse members and staff. This includes how the Clubhouse will prioritize and complete ongoing daily work of the Clubhouse, set short and long-term goals, and decide who will be involved in these activities, and how they will be accomplished (e.g. hours of operation, employment program management, hiring and evaluating staff, menu planning, facility maintenance needs, social and recreational activities, annual budgeting priorities, etc.). These operational decisions and practices are managed by members and staff working side-by-side and building consensus about what is needed and best for the Clubhouse community.

Decision Making:

Shared decision-making is an important part of the Clubhouse approach and day-to-day management of the organization. The accepting and inclusive culture of the Clubhouse allows and encourages member participation in the decision-making that directly impacts the life of the Clubhouse community.

Members and staff meet in open forums to discuss operational policy issues and future planning for the Clubhouse. The Clubhouse director is charged with making sure that all voices are heard and responded to in this process. The empowering process of shared decision-making supports the idea of "member" versus "service recipient' or "patient" that is fundamental to the Clubhouse model. Membership involves shared ownership and responsibility for the success of the Clubhouse.

Governance and Clubhouse Standards:

The principle of member and staff participation in decision-making is part of the International Standards and is considered an essential feature of effective clubhouse operation. Decisions are transparent and decided based on consensus among the Clubhouse community. Relevant International Clubhouse Standards that address issues of governance are Standards # 11 and #37:

Standard #11 - Responsibility for the operation of the Clubhouse lies with members and staff and ultimately with the Clubhouse director. Central to this responsibility is the engagement of members and staff in all aspects of Clubhouse operation.

Standard #37 - The Clubhouse holds open forums and has procedures that enable members and staff to actively participate in decision-making, generally by consensus, regarding governance, policy-making, and the future direction of the Clubhouse.

Learning Objectives:

Understand the corporate structure of each type of Clubhouse and the implications that each has for the governance and management of the Clubhouse.
Become familiar with the International Clubhouse Standards that apply to governance.
Explore the various governance and management roles and responsibilities within the Clubhouse.
Understand how policies are established for the Clubhouse.
Recognize the consensus decision-making style of a Clubhouse and how the Clubhouse manages its day-to-day operations.

Study Questions:

Clubhouse Governance and Management

Why is it important to know the corporate structure of the Clubhouse?

What is the difference between a fully incorporated clubhouse and one that has an auspice agency?

What are the implications for governance and management in each type of Clubhouse?

Which International Clubhouse Standards apply to the management and governance of the Clubhouse?

Are there differences in the governance and management roles within the Clubhouse?

How policies are established for the Clubhouse?

What is the typical decision-making style of a Clubhouse and how are operational decisions made on a day-to-day basis.

Essential Reading:

Business News Daily: What are Articles of Incorporation?
Indeed: What Are Corporate By-laws?
Akiba, C. & Estroff, S. (2016). "The Business of Staying in Business: North Carolina Clubhouse Programs". AMERICAN JOURNAL OF PSYCHIATRIC REHABILITATION. VOL. 19, NO. 2, 97–102

The business of staying in business- North Carolina Clubhouse programs .pdf